Solana (SOL) Price: Can Bulls Defend $180 Amidst Weak Demand?

Key Takeaways

Solana recently flipped a key resistance level to support, but its ability to defend this level is questionable. Bitcoin's selling pressure, coupled with Solana's lukewarm buying interest, could see SOL relinquishing its gains.

Solana [SOL] has shown a gradual upward trend. Bulls successfully reclaimed the $180 area as support. Coupled with a bullish market structure on the daily timeframe, the outlook appeared optimistic for SOL buyers.

On August 21st, a Solana whale accumulated 60,000 SOL, worth $11.23 million. Futures data also suggests potential short-term bullish momentum. Solana's high throughput continues to attract institutional attention.

Bitcoin [BTC] needs to stabilize its retracement for Solana to continue its ascent. Currently, BTC trades around $113.2k, just above the $112.4k support. Ark 21Shares' $64.4 million Bitcoin sale has introduced some market apprehension.

Solana's $180 Support: A Volume Dilemma

The swing points on the daily chart are marked at $155.8 and $206.3. A breakout beyond either of these levels will dictate the future trend. Currently, SOL's price oscillates between these values, having transformed the previous resistance from May into support.

The market structure is bullish, and the RSI indicates upward momentum. However, the On Balance Volume (OBV) remains relatively flat. Increased buying volume is essential in the coming days to sustain bullish momentum towards $206 and beyond.

Short-Term Outlook: $188 as the Deciding Factor

On the 4-hour chart, the OBV is not showing an upward trend, and volume remained low during the pullback from $206 to $180. The RSI is neutral.

Although recent price action appeared bearish, there are signs of a potential bullish reversal. Breaking the $188 level is crucial for a bullish shift in the 4-hour structure. This would signal that buyers are in control at the $180 level, potentially paving the way for further gains.